FxWirePro: Oil starts the week on a negative note; rising US output, economic slowdown and oversupply fears to keep pressure

US Oil chart on Trading View used for analysis

• WTI starts the week on a bearish note, trades 1.85% lower on the day at 52.53.
   
• Baker Hughes data showed that of US oil rigs rose by 10 to 892 in the week ended Jan. 15 - the first weekly rise of 2019.
   
• US-China trade war, lower demand from Europe and the resulting slowdown in the global economy to add further pressure.
   
• Price is in a major downtrend and technical studies do not show any major signs of recovery.
   
• We see price action is extending sideways grind along 55-EMA resistance and break below 21-EMA could see further downside.
   
• We evidence slight bearish divergence on Stochastics which adds to the bearish bias.

Support levels - 52.22 (200-W SMA), 51.59 (21-EMA), 51.03 (20-DMA)

Resistance levels - 53.28 (55-EMA), 54.30 (Jan 22 high), 54.54 (Dec 4 high)

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